The U.S. Department of Agriculture is yet to release the World Agricultural and Demand Estimates Report this day to determine if the price of the said crops are to be raised. There is currently a bleakly low level for corn futures as of the moment. Some are pointing fingers to the crop’s pollination especially during the summer when the crops are susceptible to the harsh and hot weather.
Analysts and experts believe that this upcoming USDA key report will shed some light on the prices of corn and soybean while at the same time provide answers to how the crop futures have reached a low point.
Compared to 2.261 billion bushels as reported in the agency’s July report, a street estimate for all wheat production in the country showed nearly 2.269 billion bushels.
U.S. Soybean crops rallied today with an increasing export demand based on the USDA report with overseas sales amounting to almost 3 million tonnes going beyond analyst expectations.
Mixed reports on individual crops
While wheat crops gained a slight change after last week’s 2% gains, the USDA weekly export sales report showed a good five weeks rising above trade prospects with 600,000 tonnes. Traders are now looking at the upcoming USDA World Agricultural and Demand Estimates Report to shed light in Western Europe’s poor harvest and Black Sea region’s and unusually productive harvest.
Currently, soybeans garners most of its market gains from exports but the USDA supply and demand support is still yet to determine the direction of the crop’s market. National Australia Bank agribusiness economist Phin Ziebell stated that China’s export demand for U.S grown soybean harvest increased the price for the said crop.
Sales of 129,000 tonnes of U.S. grown soybeans to different places and another 120,000 to China was also confirmed by the USDA with approximately 91% of the crops blooming after this week’s report.
Oilseed crops also gained 1.5% on its weekly report taking back last week’s loss to almost 3%.
After closing down to 0.4%, corn futures remain unmoved with one bushel at $3.31-3/4. For the week, corn fell down by one percent making it two consecutive falls in two weeks. A drop of more than 2% was also experienced the preceding week.
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